Hoa House Loan
to buy another property or refinance?
Hello, In 2006 I bought a condominium in Las Vegas 170k (CASA MESA VILLAS). It is a five-year ARM with a second mortgage. The second mortgage is 34k with 11% interest rate.I could pay my second mortgage and refinance my apartment. My sister suggested putting my 34k in a newer and larger space and screened at condo. My question …. Should I take her advice? My close friends are renting space for 800, I have still to come up to 500 cause the monthly mortgage combined loan plus Hoa is U $ 1,266. (I live with my sister). I have a stable job and my two children are all adults. pay An additional 500 are ok, it's not hurting me. I went to Bank of America and was told that I could afford to buy another house for 180k. What should I do?
I would suggest paying your second mortgage in full. With 11% interest on a second mortgage money you would be best served to pay this off. You will find it difficult to find an investment will pay 11% return in the current economy. Also you will have more equity in the property you could use at a future date. With the Federal Reserve prime lending rates to a historic low and may fall lower rid of this second mortgage would be Job # 1 in my opinion. Good luck with your financial future.